A practical guide for commercial and domestic system owners

As more businesses and homeowners approach the end of their Renewable Heat Incentive (RHI) term, we’re being asked this question with increasing regularity. Here’s a clear summary of where you stand – and what to think about next.

If you have a commercial system

Your 20-year, inflation-linked quarterly payments from Ofgem will stop, but the system remains yours. You can keep operating it and continue to benefit from lower running costs compared to fossil fuels.

There are a few important considerations once your payments end:

• Maintenance and compliance – including any emissions regulations for biomass – become your full responsibility, without Ofgem oversight.
• If your boiler is in good condition, it may be possible to sell and reinstall it elsewhere, with the new owner potentially taking on any remaining RHI term.
• There is no direct replacement for the Non-Domestic RHI, but schemes such as the Heat Network Efficiency Scheme (HNES) and the Green Heat Network Fund (GHNF) may be relevant depending on your setup.

If you have a domestic system

Your seven-year quarterly payments will end, but the system remains yours. You will continue to benefit from reduced heating bills for the life of the equipment, which typically runs well beyond the RHI term.

Key points to be aware of:

• You cannot reapply for the Domestic RHI for the same property.
• If you sell your home, the new owner can take over any remaining payments, provided they apply within 12 months of the change of ownership.
• For new systems, the RHI has been replaced by the Boiler Upgrade Scheme (BUS), which offers a one-off upfront grant of between £5,000 and £7,000.

One critical RHI reminder: don’t let compliance slip

It can be tempting to ease off administrative tasks as you near the end of your term, but this is exactly when rigour matters most. Keep up with all meter readings and reporting obligations right up until your final payment. Ofgem can and do conduct audits towards the end of a term, and payments can be withheld or clawed back if obligations haven’t been met.

If you have heat meters, check whether they are due for recalibration or replacement. After 10 years this becomes a requirement, and missing it can result in Ofgem reclaiming past payments.

Not sure what comes next for your energy strategy?

The end of your Renewable Heat Incentive ending doesn’t have to mean the end of your energy ambitions. Whether you’re exploring what to do with your existing system or planning your next investment, the team at Practical Energy Solutions is here to help.

Get in touch on 01733 595150, to talk through your options.